Research On The Value Effect Of M & A Of Listed Companies In China

Listed companies carry out mergers and acquisitions not only for the purpose of backdoor listing,as well as horizontal integration,diversification strategy,asset restructuring,financial investment,strategic cooperation and the overall listing.The writer screens for merger purpose from China's M&A database of Wind information financial terminal,according to statistical results,then choose the M & A events of horizontal integration which has largest transaction scale and quantity to study.Finally,pick out a total of 716 M&A events during the study period.Take into account the merger and reorgniazation is a complex event,and then refine the 10 screening criteria to study,after screening through the final 10 screening criteria,the sample database for this paper contain 45 samples.In view of the listing status of target corp,which maybe listed company or proposed listing company or the company from the new third board company or regional equity trading center and other non-listed company,the non-listed company is not a public company,they have no obligation to disclose information,so it is difficult to collect their datum,finally,the writer choose the listed company which is easy to be collected relevant information and as the acquirer.The Wind information financial terminal just has datum of daily quotation of single stock nearly two years,the writer will make the time span of study period from May 2015 to March 2016.After reading a lot of documents,the writer intends to use event study method which is widely recognized.In view of M&A is a complex economic activity,it can not be done at one go,its continuous and disclosure often requires a longer period of time.So it will make different period of notice.The writer will select the first disclosure day as the event date and mark as T=0.When the first disclosure day encounter the weekend,holidays,or listed companies suspended due to major events,which lead to the stock market has no intraday transaction datum of the first disclosure day,allowing the event date to postpone till the first day which has transaction datum after the first disclosure day.After reading a lot of documents,time window for research is divided into short-term and medium and long term,this paper set for short-term event window as [T-30,T+30],abbreviated as [-30,30],which is between the first 30 trading days of the first disclosure day of a listed company's M&A event to the following 30 trading days,and medium and long term event window as [T-30,T+90],abbreviated as [-30,90],which is between the first 30 trading days of the first disclosure day of a listed company's M&A event to the following 90 trading days.The writer use the excess rate of return of stock price of listed companies which is carrying out M&A as the basis,establish the calculation model to conduct empirical analysis through the average abnormal return rate(AAR)and cumulative average abnormal return(CAR).According to the number of listed company which carry out M&A and target corp deal equity transfer amount,transaction size,and target corp will be in different industries,as well as listed company which carry out M&A announced the first disclosure day in the general period,IPO pause period or the stock market crash period might influence to the value effect brought by the mergers and acquisitions,therefore classificate the sample library from the four aspects of the first disclosure day of listed company which carry out M&A activity at different period,he target corp in different industries,mergers and acquisitions transactions,equity transfer amount of round turn which carry out mergers and acquisitions,and then study the short term and medium and long term value effects of mergers and acquisitions on listed companies at every aspect.The writer reviews the history of China's enterprise merger and reorganization and analysis of the status quo,through a detailed empirical analysis,obtains the enterprise will have some positive effect from longterm storage because of mergers and reorganization,because the market speculation in the short term,speculators stir on the “shell concept”and it will disrupt and cover the value effect of enterprise produced by mergers and acquisitions.Listed companies prefer to acquisit full equity of target corp in mergers and acquisitionsacquisition and equity transfer amount of round turn which carry out mergers and acquisitions,transaction size,the target corp in different industries,as well as the first disclosure day of listed company which carry out M&A activity in the general period,IPO pause period or the stock market crash period will have different influence to the value effect brought by the mergers and acquisitions.Through the empirical analisis of the sample library,the writer makes some suggestions to theinvestors and the listed companies:For investors,investors should choose to buy shares after the first disclosure day announced by listed company which carry out mergers and acquisitionsbut,but they should take a long time to hold before they get significant excess returns.For listed companies,mergers and acquisitions will produce positive effect to the company,in order to get more returns,they need to select target corp elaboratively,also consider on the size of the deal,the transaction amount of equity transfer carefully,and choose the appropriate timing to carry out mergers and acquisitions combined with their own development strategy in the general period,IPO pause period or the stock market crash period.